Question 1

What does "off-plan property" mean in Dubai?

Accepted Answer

Off-plan property refers to real estate that is sold before construction is completed. Buyers can purchase directly from the developer, often at a lower price with flexible payment plans. Off plan properties can also change hands before construction is complete on the secondary market.

Question 2

Is buying off-plan property in Dubai safe?

Accepted Answer

Yes, as long as you purchase from a developer or agent registered with the Dubai Land Department (DLD) and ensure the project is approved by RERA (Real Estate Regulatory Agency). Dubai has strict regulations to protect buyers.

Question 3

What are the main advantages of buying off-plan property?

Accepted Answer

The main benefits include lower entry prices, flexible payment plans, and potential capital appreciation once the project is completed. Many investors also benefit from higher rental yields in new developments.

Question 4

What are the risks of buying off-plan property?

Accepted Answer

Risks may include project delays or changes in market conditions. However, Dubai’s regulations require developers to meet construction milestones and place buyers’ funds in escrow accounts to reduce risk.

Question 5

Can foreigners buy off-plan property in Dubai?

Accepted Answer

Yes, foreign investors can purchase off-plan properties in designated freehold areas. Ownership rights are the same as UAE nationals in these zones.

Question 6

Do I need to pay the full amount before handover?

Accepted Answer

No, most developers require only partial payments during construction. The final balance is usually due upon handover of the property. However, some developers offer post-handover payment plans, allowing buyers to continue paying in instalments after receiving the keys.

Question 7

Are there additional fees when buying off-plan property?

Accepted Answer

Yes, buyers must pay registration fees to the Dubai Land Department (usually 4% of the property value), along with possible service charges and Oqood fees.

Question 8

What happens if the developer delays the project?

Accepted Answer

If a project is significantly delayed, RERA may intervene. Buyers are protected by law and may be entitled to compensation or refunds depending on the situation.

Question 9

Can I resell my off-plan property before completion?

Accepted Answer

Yes, many developers allow resale after a certain percentage of payments has been made (often 30–40%).

Question 10

How to Sell Off-Plan Property in UAE?

Accepted Answer

Selling off-plan property in the UAE requires specific procedures. First, ensure you've paid at least 30% of the purchase price to the developer, as this is typically the minimum requirement before reselling. Contact the developer to obtain a No Objection Certificate (NOC), which usually costs between AED 500-5,000 depending on the developer. Gather all original documentation including the Sale and Purchase Agreement (SPA), payment receipts, and your passport copy. The actual transfer takes place at the developer's office or the Dubai Land Department, where both buyer and seller must be present. The buyer pays you the agreed amount plus a transfer fee (typically 4% of the purchase price). Remember that if you sell before completion and the property has appreciated, you may be subject to a 30% transfer fee on the profit margin as per UAE regulations.

Question 11

What is an escrow account, and how does it protect buyers?

Accepted Answer

An escrow account is a special account where buyers’ payments are held by the Dubai Land Department. Developers can only access the funds when they meet specific construction milestones, ensuring buyer protection.

Question 12

Why Invest in UAE?

Accepted Answer

The UAE offers numerous compelling investment advantages. The country provides a tax-friendly environment with no income tax, capital gains tax, or withholding tax. Its strategic location between East and West, world-class infrastructure, and excellent connectivity through major ports and airports facilitate global business operations. The UAE government actively encourages foreign investment through 100% foreign ownership allowance in mainland companies, long-term residency visas for investors, and robust legal frameworks that protect investor rights. The diverse economy spans sectors including real estate, tourism, technology, finance, and manufacturing, offering varied investment opportunities. Additionally, the high quality of life, political stability, and safe environment make the UAE an attractive destination for investors seeking both business opportunities and lifestyle benefits.

Question 13

How Much Does It Cost to Live in UAE?

Accepted Answer

The cost of living in the UAE varies significantly depending on your lifestyle and location. In Dubai and Abu Dhabi, a one-bedroom apartment in the city center typically costs between AED 3,500-7,000 per month, while outside the center prices range from AED 2,500-5,000. Utilities for a standard apartment average AED 700-1,200 monthly. Transportation costs include taxis (starting at AED 12), monthly metro passes (around AED 270), or car ownership (fuel is relatively affordable at AED 2-3 per liter). For dining, a meal at an inexpensive restaurant costs around AED 30-50, while a three-course meal at a mid-range restaurant is about AED 150-250 for two people.

Question 14

Can I resell my off-plan property before completion?

Accepted Answer

Yes, many developers allow resale after a certain percentage of payments has been made (often 30–40%).

Question 15

Do off-plan property buyers qualify for the UAE Golden Visa?

Accepted Answer

Yes, buyers of off-plan properties worth AED 2 million or more may qualify for the UAE Golden Visa, provided the project is approved and meets government requirements.

Question 16

What is an Oqood?

Accepted Answer

Oqood is the electronic registration system by the Dubai Land Department for off-plan properties. It ensures that all sales contracts are officially recorded and protected.

Question 17

What should I check before buying off-plan?

Accepted Answer

Always check that the developer is registered with DLD, the project is RERA-approved, and funds are deposited in an escrow account. Reviewing the payment plan and handover date is also essential.

Question 18

What happens if I miss a payment?

Accepted Answer

Developers usually give a grace period, but repeated delays may lead to penalties or even contract cancellation. Buyers should carefully review the payment terms in the sales agreement.

Question 19

Do developers provide warranties for new properties?

Accepted Answer

Yes, developers in Dubai must provide a 10-year structural warranty and a 1-year warranty for fixtures and fittings, as per DLD regulations.

Question 20

Can I customize the design or finishes in my off-plan property?

Accepted Answer

Some developers allow buyers to choose from a range of finishes, layouts, or upgrades during construction, depending on the project stage. However, customization options vary and may come at an additional cost.

Question 21

What is a handover inspection, and why is it important?

Accepted Answer

A handover inspection is the process where buyers check the property before officially receiving it. This ensures any defects, snags, or quality issues are identified and corrected by the developer before move-in.

Question 22

How do service charges work for off-plan properties?

Accepted Answer

Service charges are annual fees paid by owners to maintain common areas and facilities. The Dubai Land Department regulates and approves these charges to ensure fairness. Buyers should always check the estimated service charge before purchase.

UAE Real Estate FAQ

What does "off-plan property" mean in Dubai?

Is buying off-plan property in Dubai safe?

What are the main advantages of buying off-plan property?

What are the risks of buying off-plan property?

Can foreigners buy off-plan property in Dubai?

Do I need to pay the full amount before handover?

Are there additional fees when buying off-plan property?

What happens if the developer delays the project?

Can I resell my off-plan property before completion?

How to Sell Off-Plan Property in UAE?

What is an escrow account, and how does it protect buyers?

Why Invest in UAE?

How Much Does It Cost to Live in UAE?

Can I resell my off-plan property before completion?

Do off-plan property buyers qualify for the UAE Golden Visa?

What is an Oqood?

What should I check before buying off-plan?

What happens if I miss a payment?

Do developers provide warranties for new properties?

Can I customize the design or finishes in my off-plan property?

What is a handover inspection, and why is it important?

How do service charges work for off-plan properties?